Posted by Bill K. (AZ) on April 28, 2000 at 14:14:29:
Shenesa,
I’m not an attorney, but I did a search on the internet and found these definitions for you:
LLC - Simply put, a limited liability company (LLC) is a business entity which is characterized by a form of ownership which combines elements of a regular (C) corporation or Subchapter S corporation and a partnership. Specifically, an LLC offers the following benefits to its owners:
- the tax advantages and capital flexibility of a partnership,
- the limited liability protection previously unique to a corporation,
- potentially less bureaucratic paperwork than required of a corporation, and
- no taxation at the business entity level - profits and losses (if any) passed thru to the owners.
Some states allow the creation of single-member LLCs while other states require at least 2 members.
FLP - A limited partnership among family members that is created to allow joint ownership of family-owned assets. It consists of a Partnership Agreement. The existence of a FLP is evidenced by a written agreement that details the terms of the partnership and the rights, duties and obligations of each partner. A limited partnership has two classes of partners: general partners and limited partners. Limited partners have limited liability which means that they are only responsible for partnership liabilities to the extent of the value of their partnership interest. By comparison, in a general partnership, all of the partners have liability for all of the activities of the partnership and that liability is not restricted to the value of the partnership interest of each partner. The general partner is liable for all partnership liabilities.
I hope this helps.
Bill K. (AZ)